Question 1

What are municipal property rates?

Accepted Answer

Annual property tax charged by the municipality based on property valuation. Rates must be current for transfer clearance. Buyers should confirm current rates and any arrears before transfer.

Question 2

Do I pay Capital Gains Tax when selling my home?

Accepted Answer

Primary residences qualify for a CGT exclusion (R2 million gain for individuals). Investment properties, second homes and commercial property are subject to CGT. Consult a tax professional for your situation.

Question 3

Who qualifies for transfer duty exemption?

Accepted Answer

Natural persons buying their first property may qualify for full transfer duty exemption on properties up to R1.1 million. Above that threshold, duty applies on the full value per SARS tables.

Question 4

Are there tax rebates for energy-efficient home improvements?

Accepted Answer

SARS has offered rebates for qualifying solar PV installations in certain tax years. Rules change — confirm current SARS guidelines and keep installation certificates for tax purposes.

Question 5

Are there rebates on municipal property rates?

Accepted Answer

Some municipalities offer rebates for pensioners, indigent owners or specific categories. uMngeni Municipality has published rebate policies — confirm eligibility and application process with the rates department.

Question 6

Do I pay CGT when selling inherited property?

Accepted Answer

The estate may have CGT implications on death. When you later sell inherited property, your base cost is generally the market value at date of death. Keep estate documentation and SARS records. Consult a tax practitioner.

Property Tax Questions